Hydrogen, powered by renewable electricity, may become Scotland’s biggest industrial opportunity since the North Sea oil and gas boom.
This new sector offers substantial growth and investment potential, with projections indicating that Scotland could produce up to 3.3 million tonnes of green hydrogen per year by 2045, potentially covering around 90% of the country’s current energy needs.
To capitalize on this opportunity, the Scottish Government has launched its first hydrogen sector export plan, A Trading Nation – Realising Scotland’s Hydrogen Potential. This plan identifies growth opportunities for businesses and investors, aiming to transform Scotland into a major producer and exporter of renewable hydrogen by 2030. The plan provides a framework for advancing the hydrogen industry, supporting both domestic and international market demands.
Scotland’s hydrogen supply chain is already active in global markets, providing manufactured products, project support, and integration services. The demand for hydrogen is evident in initiatives such as a whisky maltings in Inverness planning to use locally produced green hydrogen to reduce carbon emissions in its operations. Strengthening evidence for hydrogen demand in the UK and Europe is crucial for attracting investment in Scotland’s hydrogen production, transport, and storage sectors.
A thriving hydrogen sector is expected to create jobs along the value chain and support extensive manufacturing of hydrogen-derived products. To export hydrogen to international markets, Scotland must enhance its infrastructure, including storage facilities and potential pipelines connecting to Ireland and Europe. Collaboration with international partners is essential to share expertise and expedite sector development overseas.
Fostering the hydrogen industry will provide economic benefits to Scottish communities and support a just transition for those involved in traditional energy sectors. The Scottish Government is committed to seizing opportunities to utilize and export hydrogen, thereby reinforcing Scotland’s position in the global supply chain. By doing so, Scotland aims to meet growing hydrogen demands from European import countries over the next decade.
